FANG will dominate new TV revenue in 2018
The research firm also states Amazon will overtake Netflix to generate more OTT video revenue in 2018 thanks to its “growing array of ways to pay for video.” Ovum predicts Amazon’s combination of subscriptions, digital rentals, electronic sell-through and bundles of TV apps will see it generate US$5.8 billion in video-related revenue next year. It forecasts Netflix will generate $5.3 billion in revenue through its subscription-only model.
It also claimed that despite the hype, Netflix still won’t have a majority of OTT video subscribers in at least 19 countries by the end of 2018, with local providers to hold the top spot in various markets – such as Ipla in Poland, Showmax in South Africa and Iflix in Indonesia.
Possibly adding another A to FANG, Ovum predicts 2018 Apple will finally launch a new premium OTT service, initially in the US, as its share of US online video revenues via iTunes sales declines to less than 4 per cent in 2018. It also said it expects Facebook’s ad-supported Watch video platform to go international next year, but to have “minimal” global impact.